Bylaw No. (85) of 2006
Regulating the Real Property Brokers
Register in the Emirate of Dubai
The Chairman of the Land Department,
After perusal of Law No. (7) of 2006 Concerning Real Property Registration in the Emirate
Pursuant to paragraph (6) of Article (6) and Article (28) of the above-mentioned Law No.
(7) of 2006; and
Upon the presentation of the Director General of the Land Department,
Does hereby issue this Bylaw.
Definitions and General Provisions
This Bylaw shall be cited as “Bylaw No. (85) of 2006 Regulating the Real Property Brokers
Register in the Emirate of Dubai”.
The following words and expressions, wherever mentioned in this Bylaw, shall have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate : The Emirate of Dubai.
DLD : The Land Department.
Chairman : The chairman of the DLD.
Director General : The director general of the DLD.
Committee : The Permanent Brokerage Committee.
Council : The council authorised to settle Brokerage disputes.
Division : The Brokerage Regulatory Division at the DLD.
Competent Entity : Any of the government or semi-government entities in charge
of licensing the conduct of business activities.
Real Property : Anything which is fixed and cannot be moved without damage
or alteration of its structure.
Register : The electronic or paper record of Brokers.
Roll : The roll prepared by the Committee, which contains the names of
certified Category A Brokers.
Broker : Any Person who conducts the Brokerage business in accordance with
Brokerage : A service provided under an agreement whereby a Broker undertakes
to a client to find another party to conclude a contract with, and to
represent that client in the contract negotiations, in return for a fee.
Person : Any natural or legal person.
II. General Provisions
No Person may conduct the Brokerage activity in the Emirate unless he is licensed by a
Competent Entity and is registered on the Register.
A Register shall be maintained by the DLD to record the details of the Brokers licensed
to conduct the Brokerage activity in the Emirate. Any variation or amendment of these
details must be recorded in the Register.
Brokers shall be classified into two (2) categories as follows:
Experienced Persons registered on the Roll, who are approved by the Chairman but
are not licensed by the Competent Entities. These persons are exempt from the
requirement to be registered on the Register.
Persons who conduct the Brokerage activity pursuant to licences issued by the
Requirements for Registration on the
Real Property Brokers Register
Subject to the provisions of Article (5) above regarding Category A Brokers, a Person of
Category B who wishes to conduct the Brokerage activity in the Emirate must submit to
the Division an application for registration on the Register on the form prescribed for this
purpose. The application must meet the following requirements:
1. A valid commercial licence issued by a Competent Entity must be attached.
2. A certificate of membership in the Dubai Chamber of Commerce and Industry must
3. In case of sole proprietorships or companies, a copy of the passport(s) of the
applicant(s) must be attached.
4. A true copy of the title deed or lease contract of the premises of the applicant must
5. A certificate of good conduct and repute of the owner of the sole proprietorship, or
the manager(s) of the company, must be attached.
6. None of the managers or managing partners of the company may have been
declared bankrupt or convicted of a crime affecting honour or trustworthiness.
7. Certificates of completion of Real Property training courses must be obtained
as part of the programme accredited by the DLD for certification of Brokerage
corporations and companies.
8. The applicant must passe the Brokerage profession test prescribed by the DLD.
The Division shall review the applications for registration on the Register. The Division may,
within seven (7) days from the date of submission of an application, request the applicant
in writing to provide any documents or information the Division deems required.
The Division may take all necessary actions to ensure that applications for registration,
adding entries, or deregistration meet the requirements stipulated in this Bylaw and any
resolutions issued hereunder.
The Division shall present the registration application to the Committee within seven (7)
working days from the date of submission of the application or the date of completion of
the documents and information required by the Division, as the case may be.
The Committee shall have the right to approve or reject any application for registration,
and the relevant decision shall be communicated to the applicant. A decision rejecting an
application for registration must be reasoned.
Where the Committee rejects an application for registration, the applicant may re-apply
for registration, upon fulfilling all relevant requirements, within fourteen (14) days from
the date on which he is notified of the rejection decision.
The Division shall issue each Broker an identification card bearing his name, address, and
number of registration on the Register. A Broker must include his name and registration
number in all correspondence and reports issues.
A Broker registered on the Register must apply annually to the Division for renewal of his
registration. The renewal application shall be submitted to the Division on the prescribed
form at least thirty (30) days prior to expiry of the registration certificate. The Division
must renew the registration of the Broker on the Register upon verifying compliance with
the renewal requirements.
Obligations of Real Property Brokers
All registered Brokers must comply with professional code of conduct in accordance with
the Code of Ethics prepared by the Committee in consultation with experienced and well-
A Broker must enter in his own record all transactions he has conducted, maintain all
documents related to these transactions, and deliver a true copy of the documents to the
contracting parties upon their request.
In case of off-plan sale or sale based on a model, the Broker must keep the plan or model
until the transaction is completed.
A Broker must provide all information, data, and statistics relating to his Brokerage activity,
as requested by the DLD.
A Broker must disclose to his client all negotiation details, the stages of the brokerage
process, and any other information required to enable the client to make the right decision
in respect of concluding a contract with the other party. The Broker must also disclose
to the other contracting party all essential details relating to the subject matter of the
agreement, as deemed necessary to avoid uncertainty on his part.
A Broker may not broker any deal that violates the laws or regulations in force in the
Even if a Broker is engaged by only one of the parties to a deal, he must faithfully present
the details of the deal to the parties and inform them of any relevant conditions he is
aware of. The Broker shall be responsible towards the parties for any fraud or fault he
A Broker may not hold himself out as a party to the contract he brokers unless he is so
authorised by the contracting parties, in which case the Broker shall not be entitled to any
A Broker shall be deemed as the trustee of any amounts, securities, bonds, or other items
delivered to him by either party for safekeeping or for delivery to the other party. The
Broker must return or deliver these items as per the conditions stipulated for him, and
shall be governed by the trusteeship rules in this respect.
A Broker shall be liable for any loss or damage suffered by the contracting parties as a
result of his fraudulent act or deceit or as a result of failure to observe any applicable rules
stipulated in this Bylaw or in the Code of Ethics.
A Broker shall forfeit his right to receive fees or to claim reimbursement of expenses if
he breaches his obligations towards his client by acting in the interest of the other party,
or if he accepts a promise of a benefit made by the other party in circumstances where
the acceptance of that promise is prohibited under the rules of good faith or the Code of
Where several Brokers are engaged under one contract, they shall be jointly responsible
for the work assigned to them unless they are authorised to work severally.
Unless otherwise agreed, where several Persons engage a single Broker for the same
assignment, they shall be jointly responsible towards him for performing the engagement.
Real Property Broker Remuneration
A Brokerage agreement must be in writing and must state the names of the contracting
parties, the specifications of the Real Property, and the Brokerage terms. An entry shall
be created on the registry folio of the Real Property to denote that it is subject to the
Broker’s fees shall be determined by agreement. In absence of an agreement, the fees
shall be determined according to the prevailing customary practice.
1. A Broker shall be entitled to fees for his Brokerage only if it leads to concluding a
contract between the parties. A contract shall be deemed concluded if all parties agree
on all the conditions provided for in the Brokerage agreement.
2. A Broker shall be entitled to his fees upon signing the sale contract and registering it
with the DLD unless the Brokerage agreement stipulates otherwise.
3. If the sale contract is conditional upon the fulfilment of a condition which is agreed
upon in the Brokerage agreement, the Broker shall be entitled to his fees only upon
fulfilment of that condition.
Where a Brokerage agreement is terminated, the Broker shall be entitled to claim his fees
as stipulated in the Brokerage Agreement, except where he is proven to have committed
fraud or gross negligence.
Unless the Brokerage agreement stipulates otherwise, if the Broker’s advices or
negotiations fail to lead to the conclusion of a contract between the parties, the Broker
shall not be entitled to claim any compensation or reimbursement of any expenses or
costs he has incurred.
Where more than one Broker participates in the Brokerage or negotiation process
on behalf of one party for the purpose of concluding a contract, and this leads to the
conclusion of the contract, they shall share the fees as if they were one Broker. The fees
shall be distributed among these Brokers in accordance with the terms of the contract
entered into by them.
Subject to Article (30) above, if a party enters into separate agreements with several
Brokers for the same Brokerage or negotiation assignment, and only one Broker succeeds
in concluding the transaction, that Broker shall be exclusively entitled to the full fees.
A Broker shall be entitled to receive fees only from the party who engages him to broker
a deal. If the Broker is engaged by both parties, each party shall be severally liable to pay
his own share of the fees even if they both agree that one of them shall pay the Broker’s
fees in full.
Settlement of Disputes
A Council comprised of four (4) Persons in addition to the DLD Legal Advisor shall be
established at the DLD. Members of the Council shall be appointed pursuant to a resolution
of the Director General. The Council shall have jurisdiction to settle disputes relating to
The Council shall consider a Brokerage dispute only if the relevant Brokerage agreement
provides for the amicable settlement of disputes by the DLD, or if the disputants
subsequently agree to refer their disputes to the DLD. The agreement to settle disputes
amicably must be in writing and the subject matter of dispute must be specified in the
amicable settlement agreement document.
The Council shall perform its duties in accordance with simplified procedures aimed at
settling disputes expeditiously and ensuring justice for disputants. In this regard, the
Council shall follow the general principles of law. The Council’s decisions must be issued in
accordance with the rules of law unless the Council is authorised to conduct conciliation,
in which case the Council shall not be bound by these rules, except for those relating to
The Council shall have a secretariat, which shall receive requests, open case files, draft
reports and minutes of meetings, serve notices on disputants, maintain case files, and
generally provide all administrative support services to the Council. The secretariat shall
be appointed pursuant to a resolution of the Director General.
1. An amicable settlement application shall be submitted to the Committee by the
applicant on the form prescribed for this purpose. The application shall be accompanied
by the supporting documents in a number of copies equal to the number of disputants.
2. Upon payment of the prescribed fee, the chairman of the Committee shall order the
registration of the application, and the secretariat shall notify the adversary of the
3. The adversary must reply in writing to the application statement and to all facts and
claims included therein, and must submit this reply and any relevant supporting
documents to the secretariat within one (1) week from the date of being notified of
4. The Council must determine the dispute within thirty (30) days from the date of
referral of the dispute file, and this period may not be extended without valid reasons.
Penalties and Loss of a Real Property Broker’s Status
Without prejudice to any penalty prescribed by applicable laws, the Committee may
impose any of the following penalties on any Broker who violates this Bylaw or the
resolutions or instructions issued in pursuance hereof:
3. suspension of activity for up to six (6) months; or
The registration of a Broker in the Register shall be revoked if he breaches the Code of
Ethics; commits a gross violation of the laws, regulations, or instructions in force in
the Emirate; or receives three (3) black points. Revocation shall take effect pursuant to
a resolution of the Director General upon the recommendation of the Committee, and
this resolution shall state the reasons for the revocation. The Broker may submit to the
Chairman a grievance against the revocation decision, within fifteen (15) days from the
date of being notified of the decision. The decision of the Chairman in this respect shall
A Person shall cease to be a Broker and his registration with the DLD shall be revoked if:
1. he ceases his Brokerage activity permanently and notifies the DLD of the cessation;
2. he suspends his Brokerage activity for more than twelve (12) consecutive months
without a valid reason acceptable to the Committee;
3. he ceases to meet any of the requirements stipulated in this Bylaw or in any
resolutions or instructions issued in pursuance hereof;
4. his registration is proven to have been granted based on false information supplied
by him to the Division; or
5. the Chairman issues a resolution revoking the Broker’s registration in accordance
with Article (40) of this Bylaw.
The Division must notify the Competent Entities of any decision suspending the activity
of a Broker or revoking his registration.
All Brokers operating by the date of issue of this Bylaw must comply with its provisions
within six (6) months from the day on which it is issued. The Chairman may extend this
period by up to three (3) months based on valid reasons justifying that extension.
The Committee may, in consultation with Competent Entities, classify Brokers according
to their specialisation or limit their number based on the need for their services.
The DLD shall collect fees for the services provided pursuant to this Bylaw. These fees shall
be determined pursuant to a resolution of the Chairman.
The Chairman shall issue the orders, resolutions, and instructions required for the
implementation of this Bylaw.
This Bylaw comes into force on the day on which it is signed, and shall be published in the
Mohammed bin Khalifa Al Maktoum
Chairman of the Land Department
Issued in Dubai on 30 May 2006
Corresponding to 3 Jumada al-Ula 1427 A.H.